Northern Star Shatters Records with A$536M Cash Flow, Eyes Hemi Growth

Record-Breaking Financial Performance

Northern Star Resources Ltd (ASX, NST) has reported a standout financial year ending June 30, 2025, posting record underlying free cash flow of A$536 million, a 16% increase from the previous year. This robust cash generation underpins the company’s confidence in its growth trajectory and ability to deliver sustained shareholder returns. Underlying EBITDA reached A$3.5 billion, while net profit after tax stood at A$1.4 billion, reflecting strong operational execution amid a favourable gold price environment.

The company’s revenue surged 30% to A$6.4 billion, driven primarily by a 29% rise in the average realised gold price to A$3,922 per ounce. Despite inflationary pressures and increased mining activity pushing costs up by 11%, Northern Star maintained solid margins and operational discipline.

Shareholder Returns and Balance Sheet Strength

In line with its record earnings, Northern Star declared a fully franked final dividend of 30 cents per share, bringing the total dividend for FY25 to a record 55 cents per share. Combined with a completed A$300 million on-market share buy-back program, the company returned over A$840 million to shareholders during the year. The buy-back saw 27.2 million shares repurchased at an average price of A$11.04.

Balance sheet metrics remain robust, with net cash of A$1.0 billion and liquidity increased to A$3.4 billion, providing ample financial flexibility. This strength persists despite significant capital investments, including the ongoing Fimiston Mill Expansion at the Kalgoorlie Consolidated Gold Mines (KCGM) operation.

Strategic Acquisition and Growth Outlook

A major highlight of FY25 was the acquisition of De Grey Mining, adding the flagship Hemi Development Project to Northern Star’s portfolio. This transaction, valued at approximately A$4.8 billion allocated to exploration and evaluation assets, positions the company to unlock significant future value. The final investment decision for Hemi hinges on securing necessary permits and approvals, with ongoing engagement with Traditional Owners and regulators.

Looking ahead, Northern Star has provided FY26 guidance targeting gold sales between 1.7 and 1.85 million ounces, with all-in sustaining costs (AISC) forecast between A$2,300 and A$2,700 per ounce. Growth capital expenditure will focus heavily on the KCGM Mill Expansion, operational readiness projects, and advancing the Hemi Development Project. The company also plans to invest approximately A$225 million in exploration, including regional work around Hemi.

Sustainability and Operational Excellence

Northern Star continues to prioritise environmental and social responsibility, targeting a 35% reduction in scope 1 and 2 emissions by 2030, progressing towards net zero operational emissions by 2050. Recent renewable energy projects at Jundee and Carosue Dam demonstrate tangible steps in this direction, alongside a strong safety record with a Serious Lost Time Injury Frequency Rate of 0.5.

Operationally, the company expects production centres to ramp up, with KCGM forecast to deliver 550-600koz of gold in FY26, supported by both underground and open pit mining. The company anticipates inflationary pressures and higher royalties will impact costs, but ongoing capital investments aim to sustain and improve asset performance.